The group behind two proposed measures for the November ballot seeking to add casino-style gambling at Colorado horse racetracks has raised $1.125 million to fund a campaign that’s likely to be one of the most expensive this political season.

Lincoln, R.I.-based Twin River Casino contributed the money to the issue committee – called Coloradans for Better Schools – through its Mile High USA subsidiary, according to a filing with the Colorado Secretary of State’s Office. Mile High operates Aurora’s Arapahoe Park, the only horse racetrack in Colorado. Read more…

[media-credit name=”Handout” align=”alignright” width=”270″][/media-credit] A group led by John Zimpel, who owns Johnny Z’s Casino in Central City, is purchasing Bullwhackers Casino in Black Hawk.

The developer of Johnny Z’s Casino in Central City and a group of investors are acquiring Bullwhackers, one of the first casinos to open in the Colorado gambling mecca that is Black Hawk.

JZ Gaming LLC, a newly formed entity and affiliate of CC Gaming LLC, which owns Johnny Z’s, said Wednesday that it has entered into a definitive agreement with an affiliate of Penn National Gaming to acquire of Penn Bullwhackers and Penn Millsite, which includes Bullwhackers and a gas station in Black Hawk.

Financial terms weren’t disclosed. The deal requires regulatory approval and is expected to close in the second quarter.

Bullwhackers opened in 1992 and is located on 2.9 acres on the northern side of Black Hawk Read more…

Commissioners noted today that Colorado’s tax rate on the industry is “in the middle or below the middle” of rates charged on casinos nationwide.

Today’s vote means the tax rate on Colorado casinos will top off at 20 percent beginning in July. It previously topped off at 19 percent after last year’s tax cut, which led to the ouster of the previous Gaming Commission.

GOLDEN – Colorado gaming regulators are meeting today to set the casino tax rate for the fiscal year that starts in July.

A year ago, the casino industry won a 5 percent tax cut from the Colorado Limited Gaming Control Commission, a controversial move that led Gov. John Hickenlooper to oust the entire five-member panel.

Among other things, Hickenlooper was concerned about the cut’s potential impact on community colleges and local communities, two primary beneficiaries of gaming tax revenue.

The previous commission authorized the tax cut after determining that the industry needed relief because it was struggling financially amid the economic downturn.

Black Hawk, the state’s gambling mecca, wants regulators to close a tax loophole that provides an “unfair and anti-competitive tax advantage” for some operators, according to a document obtained by the Denver Post.

The Colorado Limited Gaming Control Commission is reviewing rules that allow casino owners to hold up to three licenses even if their properties are contiguous. Spreading revenue across multiple licenses provides a back-door tax break because of the state’s graduated tax structure of charging higher rates as a casino’s adjusted gross proceeds, or gross revenue, increases.

“Such an artificial division of AGP is not in furtherance of the legislative policies of ensuring honesty, fairness Read more…

A bankruptcy judge in August approved the sale of Fortune to Luna Gaming Central City, a business unit of Novi, Mich.-based Luna Entertainment, for $10 million. Luna Entertainment is the parent company of the Red Dolly Casino in Black Hawk.

In other casino news, Cripple Creek saw the closure of three operations in 2010: the Imperial in March, and the Gold Rush and Gold Diggers in October. In Black Hawk, the Bullpen closed at the end of November.
Central City added a casino with Johnny Z’s opening in June.

Colorado’s mountain casinos generated $96.7 million for historic preservation, community colleges and other beneficiaries during the fiscal year that ended June 30, according to data released today.

That’s a 13 percent increase from revenue generated during the previous fiscal year, largely a result of looser gambling regulations that took effect July 2, 2009, and authorized under Amendment 50.

The passage of the 2008 ballot measure allowed casinos to raise the maximum bet from $5 to $100, offer craps and roulette and stay open 24 hours.

Colorado’s community colleges, which were granted a cut of gambling revenue as part of the measure, received $6.2 million. Before voters approved Amendment 50, the state legislative council had estimated that colleges would receive as much as $29 million during the first year of the changes.

The state historical society received $24.9 million and the state’s general fund received $16.2 million. Other beneficiaries include the tourism promotion fund and the gambling towns and counties.

Taxes paid by casinos generate the bulk of the revenue distributed to the various agencies and organizations.

David joined The Denver Post in 1999, his second go-round in the Mile High City. Since then he’s covered a variety of topics – from human services to consumer affairs – most always with an investigative bent. Currently he does investigations and banking.